The President of the Automobile Assemblers Association of Ghana, Jeffrey Peprah, has called on the government to restore the 20% Value Added Tax (VAT) waiver for locally assembled vehicles, ahead of the 2026 Mid-Year Budget Review.
His appeal comes as Finance Minister Dr. Cassiel Ato Forson is expected to present the Mid-Year Budget Review to Parliament on Thursday, July 23.
The 20% VAT waiver on locally assembled vehicles was removed at the beginning of 2026.
Speaking on Channel One TV’s The Point of View hosted by Bernard Avle on Monday, July 20, Mr Peprah said the government should prioritise policies that encourage investment and job creation rather than relying solely on taxation.
“It’s an immediate support we need to get us back on our feet. Mr Finance Minister, Dr. Ato Forson, we know the government needs money; we don’t run the economy by only taxes; we have to create jobs, we have to create an enabling environment for more investors. That is where we will see what we want Ghana to be,” he said.
According to him, restoring the tax incentive would support the government’s ambition of making Ghana a hub for automobile manufacturing in the sub-region.
“Ghana being the hub of the automotive industry, these are the things that will grow us. And we will see the vision of Ghana being the hub of the automobile. We are almost there, and we just have to make sure this industry grows,” he stated.
Mr Peprah stressed that the local automobile industry requires immediate government support to regain momentum.
“We need to start from somewhere. It’s immediate support that we need to get us back on our feet,” he added.
He said the 20% VAT waiver gives the local automobile industry a competitive advantage.
